The cabinet served in the early years of the 2010s. Domestically, it had to deal with the fallout of the 2008 financial crisis but it was able to implement several major social reforms to law enforcement, victims' rights and immigration. Internationally, it had to deal with the European debt crisis, the war on terror and the government support for the Task Force Uruzgan. The cabinet suffered several major internal and external conflicts because of the confidence and supply construction from the Party for Freedom. The cabinet fell just 18 months into its term on 23 April 2012 after the Party for Freedom withdrew its support following a disagreeing with the coalition over stronger austerity measures to reduce the deficit following the 2008 financial crisis. The cabinet continued in a demissionary capacity until it was replaced by the second Rutte cabinet following the election of 2012.
Composition of the cabinet in relation to the rest of the legislature
Following the collapse of the fourth Balkenende cabinet on 20 February 2010, elections for the House of Representatives were held on 9 June 2010. As usual in Dutch politics, none of the parties had a majority and several informateurs were appointed to investigate the formation of a coalition cabinet. A broad coalition consisting of the People's Party for Freedom and Democracy (VVD), Christian Democratic Appeal (CDA) and the Labour Party (PvdA) was briefly looked at, but dismissed. Then negotiations for a "purple plus" coalition consisting of the VVD, PvdA, Democrats 66 and GreenLeft lasted for about three weeks, but the parties could not reach agreement on the amount of budget cuts.
Finally, a construction which is rare for the Netherlands was investigated: a minority coalition consisting of the VVD and Christian Democratic Appeal (together 52 out of 150 seats in the House of Representatives), supported in parliament by the Party for Freedom (PVV, 24 seats), to make the smallest possible majority of 76 seats. The right wing PVV had the largest gains in the recent elections.
The stated reason for this construction was that parties agreed that the largest party (the VVD) and the party with the largest gains (considered the 'winner' in Dutch politics) needed to be in power. Only CDA could or wanted to help make a majority, but they were against forming a proper coalition with PVV because of their different views on Islam and immigration. Therefore, negotiations were held to form a coalition agreement between the VVD and CDA), and to form a "parliamentary support agreement" between all three parties, which were successfully finished on 30 September 2010.
When Rutte took office on 14 October, it marked the first time that the VVD had led a government since its formation in 1946. It also marked the first liberal-led government since 1913.
Opposition parties and commentators expected that the coalition would prove to be unstable because at a special Christian Democratic Appeal conference, about a third of the party members voted against the formation of this cabinet. Also, at least three members of parliament in the CDA parliamentary fraction indicated to have difficulties with the cabinet. Eventually they left the parliament or supported the deal, pointing to the approval by the majority of the party conference.
When the cabinet took office, the three parties had a minority in the Senate of 35 out of 75 seats. The parties hoped this would change following the Dutch Senate election of 2011, but they obtained 37 seats, one short of a majority. A small protestant party, the Reformed Political Party, which obtained one seat, supported the cabinet in the Senate however.
Because of the financial crisis in the Netherlands and because of the rules of the Euro convergence criteria that the deficit should be maximum 3%, the Leaders of the People's Party for Freedom and DemocracyMark Rutte, Christian Democratic AppealMaxime Verhagen and the Party for FreedomGeert Wilders decided to talk with each other about new, severe austerity measures, worth about 14billion Euro. The negotiations about the measures were held in the Catshuis and lasted 7 weeks and ended on 21 April when Geert Wilders walked out of the negotiations. The reason he gave was that the measure would negatively impact people who receive benefits from the pensions law. Both Mark Rutte and Maxime Verhagen blamed Wilders for the failure of the negotiations. As a result, the government resigned and a new election was called.